March 29, 2024

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Tanzania

Shortly after achieving independence from Britain in the early 1960s, Tanganyika and Zanzibar merged to form the United Republic of Tanzania in 1964. One-party rule ended in 1995 with the first democratic elections held in the country since the 1970s.

Zanzibar’s semi-autonomous status and popular opposition led to two contentious elections since 1995, which the ruling party won despite international observers’ claims of voting irregularities. The formation of a government of national unity between Zanzibar’s two leading parties succeeded in minimizing electoral tension in 2010.

Tanzania is one of the world’s poorest economies in terms of per capita income, but has achieved high growth rates based on gold production and tourism. GDP growth in 2009-14 was an impressive 6-7% per year. Tanzania has largely completed its transition to a market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining.

The economy depends on agriculture, which accounts for more than one-quarter of GDP, provides 85% of exports, and employs about 80% of the work force. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania’s aging infrastructure, including rail and port, that provide important trade links for inland countries. Recent banking reforms have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget.

The financial sector in Tanzania has expanded in recent years and foreign-owned banks account for about 48% of the banking industry’s total assets. Competition among foreign commercial banks has resulted in significant improvements in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting high fraud risk. All land in Tanzania is owned by the government, which can lease land for up to 99 years. Proposed reforms to allow for land ownership, particularly foreign land ownership, remain unpopular.

In 2013, Tanzania completed the world’s largest Millennium Challenge Compact grant, worth $698 million, and in December 2012 the Millennium Challenge Corporation selected Tanzania for a second Compact. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. In late 2014 a highly publicized scandal in the energy sector involving senior Tanzanian officials resulted in international donors freezing nearly $500 million in direct budget support to the government.

Tanzania GDP (purchasing power parity):
$92.53 billion (2014 est.)
$86.31 billion (2013 est.)
$80.69 billion (2012 est.)
note: data are in 2014 US dollars
country comparison to the world: 84

Tanzania GDP (official exchange rate):
$36.62 billion (2014 est.)

Tanzania GDP – real growth rate:
7.2% (2014 est.)
7% (2013 est.)
6.9% (2012 est.)
* country comparison to the world: 17

Tanzania GDP – per capita (PPP):
$1,900 (2014 est.)
$1,900 (2013 est.)
$1,800 (2012 est.)
note: data are in 2013 US dollars
country comparison to the world: 204

Tanzania Gross national saving:
17.8% of GDP (2014 est.)
15.5% of GDP (2013 est.)
18.2% of GDP (2012 est.)
country comparison to the world: 94

Tanzania GDP – composition, by end use:
household consumption: 66%
government consumption: 19.8%
investment in fixed capital: 33.2%
investment in inventories: 0.6%
exports of goods and services: 20.6%
imports of goods and services: -40.3%
(2014 est.)

Tanzania GDP – composition, by sector of origin:
agriculture: 26.9%
industry: 25.2%
services: 48%
(2014 est.)

Tanzania Agriculture – products:
coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (manioc, tapioca), bananas, fruits, vegetables; cattle, sheep, goats

Tanzania Industries:
agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer

Tanzania Industrial production growth rate:
8.1% (2014 est.)
* country comparison to the world: 22

Tanzania Labor force:
25 million (2014 est.)
* country comparison to the world: 27

Tanzania Labor force – by occupation:
agriculture: 80%
industry and services: 20% (2002 est.)

Tanzania Unemployment rate:
N/A%

Tanzania Population below poverty line:
36% (2002 est.)

Tanzania Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 29.6% (2007)

Tanzania Distribution of family income – Gini index:
37.6 (2007)
34.6 (2000)
country comparison to the world: 76

Budget:
revenues: $6.44 billion
expenditures: $8.626 billion (2014 est.)

Taxes and other revenues:
17.6% of GDP (2014 est.)
country comparison to the world: 177

Budget surplus (+) or deficit (-):
-6% of GDP (2014 est.)
country comparison to the world: 184

Public debt:
42.9% of GDP (2014 est.)
41.2% of GDP (2013 est.)
country comparison to the world: 88

Fiscal year:
1 July – 30 June

Inflation rate (consumer prices):
6.2% (2014 est.)
7.9% (2013 est.)

Central bank discount rate:
8.25% (31 December 2010)
3.7% (31 December 2009)
* country comparison to the world: 34

Commercial bank prime lending rate:
17.4% (31 December 2014 est.)
15.82% (31 December 2013 est.)
* country comparison to the world: 24

Stock of narrow money:
$4.799 billion (31 December 2014 est.)
$4.573 billion (31 December 2013 est.)
country comparison to the world: 102

Stock of broad money:
$7.936 billion (31 December 2014 est.)
$7.533 billion (31 December 2013 est.)
* country comparison to the world: 113

Stock of domestic credit:
$8.647 billion (31 December 2014 est.)
$8.202 billion (31 December 2013 est.)
country comparison to the world: 108

Market value of publicly traded shares:
$1.803 billion (31 December 2012 est.)
$1.539 billion (31 December 2011)
$1.264 billion (31 December 2010 est.)
* country comparison to the world: 102

Current account balance:
-$5.19 billion (2014 est.)
-$5.188 billion (2013 est.)
country comparison to the world: 170

Exports:
$6.084 billion (2014 est.)
$5.258 billion (2013 est.)
* country comparison to the world: 110

Exports – partners:
India 20%, China 13.3%, Japan 4.7%, UAE 4.4%, Kenya 4.2% (2013)

Exports – commodities:
gold, coffee, cashew nuts, manufactures, cotton

Imports:
$11.95 billion (2014 est.)
$11.03 billion (2013 est.)
country comparison to the world: 96

Imports – commodities:
consumer goods, machinery and transportation equipment, industrial raw materials, crude oil

Imports – partners:
India 25%, China 24.6%, South Africa 5.1%, Kenya 4.4% (2013)

Reserves of foreign exchange and gold:
$4.758 billion (31 December 2014 est.)
$4.674 billion (31 December 2013 est.)
note: excludes gold
country comparison to the world: 96

Debt – external:
$15.35 billion (31 December 2014 est.)
$13.83 billion (31 December 2013 est.)
country comparison to the world: 41

Stock of direct foreign investment – at home:
$N/A

Stock of direct foreign investment – abroad:
$N/A

Exchange rates:
Tanzanian shillings (TZS) per US dollar –
1,647.8 (2014 est.)
1,600.4 (2013 est.)
1,583 (2012 est.)
1,572.1 (2011 est.)
1,409.3 (2010 est.)

Location:
Eastern Africa, bordering the Indian Ocean, between Kenya and Mozambique

Geographic coordinates:
6 00 S, 35 00 E

Map references:
Africa

Area:
total: 947,300 sq km
land: 885,800 sq km
water: 61,500 sq km
note: includes the islands of Mafia, Pemba, and Zanzibar
* country comparison to the world: 31

Area – comparative:
slightly larger than twice the size of California

Land boundaries:
total: 4,161 km
border countries (8): Burundi 589 km, Democratic Republic of the Congo 479 km, Kenya 775 km, Malawi 512 km, Mozambique 840 km, Rwanda 222 km, Uganda 391 km, Zambia 353 km

Coastline:
1,424 km

Maritime claims:
territorial sea: 12 nm
exclusive economic zone: 200 nm

Climate:
varies from tropical along coast to temperate in highlands

Terrain:
plains along coast; central plateau; highlands in north, south

Elevation extremes:
lowest point: Indian Ocean 0 m
highest point: Kilimanjaro 5,895 m (highest point in Africa)

Natural resources:
hydropower, tin, phosphates, iron ore, coal, diamonds, gemstones, gold, natural gas, nickel

Land use:
arable land: 16.37%
permanent crops: 2.43%
other: 81.2% (2012 est.)

Irrigated land:
1,843 sq km (2003)

Total renewable water resources:
96.27 cu km (2011)

Freshwater withdrawal (domestic/industrial/agricultural):
total: 5.18 cu km/yr (10%/0%/89%)
per capita: 144.7 cu m/yr (2002)

Natural hazards:
flooding on the central plateau during the rainy season; drought
volcanism: limited volcanic activity; Ol Doinyo Lengai (elev. 2,962 m) has emitted lava in recent years; other historically active volcanoes include Kieyo and Meru

Environment – current issues:
soil degradation; deforestation; desertification; destruction of coral reefs threatens marine habitats; recent droughts affected marginal agriculture; wildlife threatened by illegal hunting and trade, especially for ivory

Environment – international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands
signed, but not ratified: none of the selected agreements

Geography – note:
Kilimanjaro is the highest point in Africa and one of only two mountains on the continent that has glaciers (the other is Mount Kenya); bordered by three of the largest lakes on the continent: Lake Victoria (the world’s second-largest freshwater lake) in the north, Lake Tanganyika (the world’s second deepest) in the west, and Lake Nyasa (Lake Malawi) in the southwest

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    Mr. Issaria M Mangalili
    Division of Environment
    +255 22 2113857
    Ms Magdalena Mtenga
    Assistant Director
    +255 22 211 3857
    Ms. Rogathe Kisanga
    Principal Chemist
    +255 22 211 3983
    Ms Francisca Katagira
    Assistant Director
    +255 22 286 5642
    Said Athuman Seif
    Environment Officer
    +255 22 211 387
    Sabanitho Laurent Mtega
    Director Chemicals Management Dept
    +255222113383
    Eng. Albina John Griphin
    National Environment Management
    +255 22 277 4889
    Mr. Daniel Ndiyo
    Government Chemist Laboratory
    +255 222 113383
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